Latest market data

Stock search

KELLOGG, Idaho, June 9, 2011 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) and Marathon Gold Corporation (TSX:MOZ) are pleased to announce continuing results from their core drilling program underway at the Golden Chest mine in Murray, Idaho. All drill intersections in this release are undiluted.

Surface core drilling has been focused on extending the current underground reserve block on the Idaho vein down dip and to the north, and has been successful. Drill hole GC-11-6 intersected 2.0 meters (true thickness) of the Idaho vein assaying 9.31 grams per tonne (g/t) gold. A total of 13 holes were completed in this area of Idaho vein drilling, and the assays have been received for 8 of these holes. Two drill rigs will now focus on the definition and expansion of open pit resources on the property. Four of the open pit drill holes have been completed.

An underground drilling program has been completed at the project about 400 meters north of the Idaho vein drilling in an area of the mine known as the Katie-Dora. Drilling here in GC-U11-7 returned 54.6 g/t over 1.1 meters and GC-U11-8 returned 34.44 g/t over 1.4 meters, both through what is thought to be the Katie vein. The Katie-Dora drilling has experienced difficult drilling conditions in a zone of fractured rock that appears mineralized, but poor recovery has resulted in insufficient sample mass.

Core drilling of the Idaho vein down dip of the No. 3 Level has been successful in increasing the area of gold mineralization down dip and to the north of the current underground reserve.

A hanging wall vein above the Idaho vein called the "H" vein was intercepted four more times.

GC-U11-7 and GC-U11-8, intercepted 54.6 g/t over 1.1 meters and 34.44 g/t over 1.4 meters, respectively, and confirmed the presence of high grade gold mineralization in the Katie-Dora area of the mine near existing workings.

Drilling has started on the open pit resource drilling where two drill rigs will drill at least 56 holes with a goal of creating a NI 43-101 compliant resource by year end.

Table 1 – Significant Drill Intersections at the Golden Chest Mine

DDH

Vein

From(m)

To (m)

Core Width (m)

True Thickness (m)

Gold (g/t)

GC-11-1

Idaho

165.7

170.3

4.6

4.4

6.25

GC-11-2

Idaho

152.3

154.9

2.6

2.6

33.00

GC-11-3

H

138.7

140.9

2.2

0.8

14.93

Idaho

206.6

213.2

6.6

5.2

2.08

includes

206.6

208.2

2.6

1.3

4.94

GC-11-4

H

87.9

92.0

4.1

1.9

2.04

Idaho

177.3

179.3

2.0

1.6

2.18

GC-11-5

H

138.8

141.2

2.4

0.8

2.82

Idaho

199.2

204.3

5.1

4.0

2.03

GC-11-6

Idaho

194.4

197.5

3.1

2.0

9.31

GC-11-7

Idaho

264.2

270.0

5.8

3.3

2.30

includes

264.2

266.4

2.2

1.3

5.47

GC-11-8

H

85.7

87.8

2.1

1.1

2.12

Idaho

180.8

186.6

5.8

5.2

2.06

includes

180.8

183.8

3.0

2.7

2.94

GC-U11-7

Katie?

7.0

8.1

1.1

unknown(1)

54.60

GC-U11-8

Katie?

13.1

14.5

1.4

unknown(1)

35.44

(1) True thickness cannot be calculated until more vein intersections are drilled.

The intercepts from the Idaho vein range from 65 to 160 meters vertically below the No. 3 level which is the lowest level developed on the Idaho vein. The drilling completed this year on the Idaho vein has defined an area about 100 meters north and 100 meters down dip of the current underground reserve block.

Phillip Walford, President of Marathon Gold Corp. commented: "The intersections of the Idaho vein demonstrate that the structure is robust and does have high grade areas typical of lode gold veins. More work is justified in delineating the higher grade areas. The drill results in the north end of the mine are consistent with high grades which were historically mined, and so are very encouraging. Our current drilling program, which is designed to define an open pit resource this year, is very important in the overall potential development of the property. We have really just started systematic exploration of the mine and property."

The Golden Chest Mine

The Golden Chest Mine is located two miles east of Murray, Idaho within the gold belt of the Coeur d'Alene Mining District. Golden Chest LLC operates the mine and is owned 50% by NJMC and 50% by MOZ. A surface and underground drilling program of at least 10,000 meters is planned for 2011 with the goal of producing a NI 43-101 compliant resource estimate for the property.

The mine has over 3,900 meters of underground workings and has the permits necessary to drill and operate on the deposit. The property includes 24 patented mining claims and 70 unpatented mining claims covering 497 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the JV to work easily on the mine property.

Gold mineralization can be found along at least 1,500 meters of strike length along the Idaho fault on the property. The veins in the north end of the mine were historically mined at higher grades, estimated to have been 17 g/t gold, whereas the Idaho vein in the south end of the mine was thicker but lower in grade (175 m length on the main level grading 6.71 g/t gold). The lowest major level of the Golden Chest mine is the No. 3 level, which is near the valley bottom elevation. The drilling to-date has only probed the Idaho vein about 160 meters below this level in a district known for hosting orebodies that outcrop on surface and continue at depth for 2,500 meters.

The Idaho vein has an SEC compliant proven and probable underground reserve of 242,000 tonnes grading 5.10 g/t Au containing 40,000 ounces (ozs) of gold. The Idaho vein outcrops and a measured and indicated open pit resource of 1.2 Mt grading 1.35 g/t Au has been estimated with an additional inferred resource of 5.5 Mt grading 0.98 g/t gold. The open pit resource estimate was completed in early 2010 using a cutoff grade of 0.5 g/t.

There will be two drills working this summer on the surface to define the open resource on the Idaho vein. The underground drilling has been suspended to allow the rehabilitation of the main drift of the No. 3 level to progress more efficiently. This rehabilitation effort will consist of ground repair, the installation of services, and the excavation of drill stations in the high grade Katie-Dora area in preparation for underground drilling this winter.

All of the samples were analyzed by American Analytical of Osburn, Idaho, an ISO certified laboratory. Samples were analyzed using lead collection fire assay with a gravimetric finish.

About New Jersey Mining Company:

New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal resources in the Coeur d'Alene Mining District of northern Idaho. New Jersey Mining Company has a portfolio of mineral properties in the Coeur d'Alene Mining District including the New Jersey Mine which includes a fully-permitted flotation mill and a concentrate leach plant.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Such statements are based on good faith assumptions that New Jersey Mining Company believes are reasonable but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Factors that could cause actual results to differ from those anticipated are discussed in New Jersey Mining Company's periodic filings with the Securities and Exchange Commission.

The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms, such as "measured," "indicated," and "inferred resources," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10-Q.